Trying to figure out what to do?
Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
Trying to figure out what to do?
Most Popular Reply
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
11yWell, I think I'm qualified to respond on a number of levels.
In 2009 I had heart attack, emergency heart surgery to repair a ruptured aorta, massive stroke, coma, paralysis, etc. I fact, I was still in the coma 6 years ago today.
However, it was the cognitive damage that was most distressing, not the paralysis (have both to some extent to this day). Probably why I exhibit so much contempt for those posters who piss and moan about their "problems."
Since real estate involves so much to understand, cognitive skills are essential. Having an understanding of the foundation and essentials of RE is critical. If you are familiar with the collateral, valuation, title research and documentation, you are well in your way.
Legal aspects of tax liens (and affect on title and subordinate lien positions) is quite involved and will vary state by state.
If you decide to go forward, I would specialize in a tight geographic area with a particular state and focus your efforts on being an expert on these counties.
Energy level is a whole other topic. Personally, I employ strategies that work well given my own limits and adhering them, despite others not always understanding. The definition of maturity is learning how to say "no" is one word.
I don't know your personal financial situation, so you want to assess your own tolerance for risk and hassle factors in deals.
Also, I've learned to become a capital guy to my industry and my competition, in particular. Because I'm a good marketer and have retained much influence with the CA probate legal community, I've been able to leverage the relationships and refer a substantial percentage of my leads to my competition, including deals that I fund but don't want to work for one reason or another.
Lastly, don't let others define your limits for you. Only you can decide what is a good use of your time, money, brainpower and energy!
34 Replies
- Investor & Contractor · Cincinnati, OH · Member since 2015 · 73 posts · 33 votes11y
Michael,
That is a tough question to answer due to your health and unknown financial situation. If you have money set aside that you can invest and if lost, you will still be ok, then I say get into something you can do that won't cause much stress. I haven't personally persued tax liens because of all the things that go along with it. I'd possibly suggest investing in REIT's instead. This should give you a more structured return on your investments with less time/energy involved.
- 11yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Michael Lee you may want to repost this in the Tax lien category... you posted this in MHP category. you will probably get better feedback
- Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes11y
Jay has a point. I suggest you join your local REIA and find locals who buy the same type of liens you'd be. Learn from them. I also suggest you check out at least one of the national lien teachers and buy training that attracts you. The more REI I do, the more I've come to believe you have to jump start your success by networking with folks doing the same thing (REIAs and BP and else where), hire mentors and coaches, buy training systems. I started when I was older and could not have done 35 SFRs in 5 years had I gone the path of learning on the job, vs mentors, REIAs, buying training to shorten the process.
Good luck. BTW one of the tactics that really ramped up our progress was my wife retiring teaching and moving her 403b to a SD-IRA and buying a bunch of rentals in her IRA. I have read of crafty people changing jobs strategically just to get at the 401k cash to move into a SD-IRA to buy houses vs being stuck in the stock market. I mention strategic job change in regards to your wife still working. Just one trick to get a larger exposure to real estate passive income.
Today, since we self manage 14 or so (taxable) rentals, we are entitled to have a solo-401k. Any type of self employment, managing your own taxable rentals qualifies (where rentals in an SD_IRA does not), you to have your own solo 401k. We will move our SD-IRAs to solo 401k, a MUCH better situation than working through a SD-IRA custodian. You have to live through buying, rehabbing, managing rentals through a custodian to realize the serious pain that is. A solo-401k gives you check book control, no custodian and a lower IRS penalty foot print should you have your retirment account audited.
- Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes11y
@Michael Lee i have moved your post to the tax liens forum as Jay suggested.
It is tough to say what is the best strategy for any one person. Your goals, resources, and personal skills all factor in to the decision.
The free ultimate beginners guide under the learn tab above will give you an overview of real estate investing and may help you decide.
I do tax liens in a big way. I do quite well with them but I must cation you that they are not without risk as many gurus pitching courses would imply. You have to know that the property is valuable enough to be security for your investment. Going by assessed value (the tax value) is not necessarily a good indicator.
Also you need to know the rules which vary by area. In my state tax liens expire worthless after 2 years if you have not started foreclosure. If you didn't know that you could lose a lot of money.
- Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes11y
Once your spouse can transfer her employer retirement plan to an IRA, she will be able to invest her retirement funds in tax liens.
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes11y
Thank you! I knew that allready..
- Investor · Winnipeg, Manitoba · Member since 2013 · 303 posts · 321 votes11y
You have very good advice from all the gentleman above already.
With your construction background & 25% interest in TX. I do think investing in TX tax deed will be a good move for you; as You can collect rent(income) from day 1 during the redemption period.
Like @Ned Carey suggested. Know the state statue regarding tax sale is extremely important. Also make sure you MUST drive & check out the property before bidding.
Tax lien in other states can be a very slow process, but if you are patient & good with tracking process; it can be very rewarding when you can foreclose on the property.
@Richard D & @Roy Oliphant are two BP members that knows TX tax sale well. Connect with them & may be they can provide you with more local info.
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes11y
Originally posted by @Tom Yung:
You have very good advice from all the gentleman above already.
With your construction background & 25% interest in TX. I do think investing in TX tax deed will be a good move for you; as You can collect rent(income) from day 1 during the redemption period.
Like @Ned Carey suggested. Know the state statue regarding tax sale is extremely important. Also make sure you MUST drive & check out the property before bidding.
Tax lien in other states can be a very slow process, but if you are patient & good with tracking process; it can be very rewarding when you can foreclose on the property.
@Richard D & @Roy Oliphant are two BP members that knows TX tax sale well. Connect with them & may be they can provide you with more local info.
Thank for your help and a lot of confidence,
- Attorney · Chicago, IL · Member since 2015 · 142 posts · 79 votes11yAssuming you feel competent enough to undertake these types, I would spend a lot of time researching which states/counties to invest in. Some states (such as IL, where I practice) are very tax buyer friendly (clear title on deeds, good returns on redemptions, ways to get your money back on "bad" properties), and others are not (low returns, no opportunities to get your money back, the need to file a quiet title action after getting a deed). Good luck!
- Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes11y
Well, I think I'm qualified to respond on a number of levels.
In 2009 I had heart attack, emergency heart surgery to repair a ruptured aorta, massive stroke, coma, paralysis, etc. I fact, I was still in the coma 6 years ago today.
However, it was the cognitive damage that was most distressing, not the paralysis (have both to some extent to this day). Probably why I exhibit so much contempt for those posters who piss and moan about their "problems."
Since real estate involves so much to understand, cognitive skills are essential. Having an understanding of the foundation and essentials of RE is critical. If you are familiar with the collateral, valuation, title research and documentation, you are well in your way.
Legal aspects of tax liens (and affect on title and subordinate lien positions) is quite involved and will vary state by state.
If you decide to go forward, I would specialize in a tight geographic area with a particular state and focus your efforts on being an expert on these counties.
Energy level is a whole other topic. Personally, I employ strategies that work well given my own limits and adhering them, despite others not always understanding. The definition of maturity is learning how to say "no" is one word.
I don't know your personal financial situation, so you want to assess your own tolerance for risk and hassle factors in deals.
Also, I've learned to become a capital guy to my industry and my competition, in particular. Because I'm a good marketer and have retained much influence with the CA probate legal community, I've been able to leverage the relationships and refer a substantial percentage of my leads to my competition, including deals that I fund but don't want to work for one reason or another.
Lastly, don't let others define your limits for you. Only you can decide what is a good use of your time, money, brainpower and energy!
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes11y
Originally posted by @Rick H.:
Well, I think I'm qualified to respond on a number of levels.
In 2009 I had heart attack, emergency heart surgery to repair a ruptured aorta, massive stroke, coma, paralysis, etc. I fact, I was still in the coma 6 years ago today.
However, it was the cognitive damage that was most distressing, not the paralysis (have both to some extent to this day). Probably why I exhibit so much contempt for those posters who piss and moan about their "problems."
Since real estate involves so much to understand, cognitive skills are essential. Having an understanding of the foundation and essentials of RE is critical. If you are familiar with the collateral, valuation, title research and documentation, you are well in your way.
Legal aspects of tax liens (and affect on title and subordinate lien positions) is quite involved and will vary state by state.
If you decide to go forward, I would specialize in a tight geographic area with a particular state and focus your efforts on being an expert on these counties.
Energy level is a whole other topic. Personally, I employ strategies that work well given my own limits and adhering them, despite others not always understanding. The definition of maturity is learning how to say "no" is one word.
I don't know your personal financial situation, so you want to assess your own tolerance for risk and hassle factors in deals.
Also, I've learned to become a capital guy to my industry and my competition, in particular. Because I'm a good marketer and have retained much influence with the CA probate legal community, I've been able to leverage the relationships and refer a substantial percentage of my leads to my competition, including deals that I fund but don't want to work for one reason or another.
Lastly, don't let others define your limits for you. Only you can decide what is a good use of your time, money, brainpower and energy!
Thank you very much!
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes11y
my brain still works well and I wish you the best!
- Richmond, TX · Member since 2015 · 24 posts · 1 vote11yMichael, You alluded to collecting rent in an earlier post? Could you explain further please?
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Ned Carey:
@Michael Lee i have moved your post to the tax liens forum as Jay suggested.
It is tough to say what is the best strategy for any one person. Your goals, resources, and personal skills all factor in to the decision.
The free ultimate beginners guide under the learn tab above will give you an overview of real estate investing and may help you decide.
I do tax liens in a big way. I do quite well with them but I must cation you that they are not without risk as many gurus pitching courses would imply. You have to know that the property is valuable enough to be security for your investment. Going by assessed value (the tax value) is not necessarily a good indicator.
Also you need to know the rules which vary by area. In my state tax liens expire worthless after 2 years if you have not started foreclosure. If you didn't know that you could lose a lot of money.
Thank you very much. I know I did not mention it but I have plenty of money to start with.i have read all the guide you mentioned. Thanks again!
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Tom Yung:
You have very good advice from all the gentleman above already.
With your construction background & 25% interest in TX. I do think investing in TX tax deed will be a good move for you; as You can collect rent(income) from day 1 during the redemption period.
Like @Ned Carey suggested. Know the state statue regarding tax sale is extremely important. Also make sure you MUST drive & check out the property before bidding.
Tax lien in other states can be a very slow process, but if you are patient & good with tracking process; it can be very rewarding when you can foreclose on the property.
@Richard D & @Roy Oliphant are two BP members that knows TX tax sale well. Connect with them & may be they can provide you with more local info.P
Thank you very much!
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Justin Thompson:
Michael,
That is a tough question to answer due to your health and unknown financial situation. If you have money set aside that you can invest and if lost, you will still be ok, then I say get into something you can do that won't cause much stress. I haven't personally persued tax liens because of all the things that go along with it. I'd possibly suggest investing in REIT's instead. This should give you a more structured return on your investments with less time/energy involved.
Thank you very my Hair! I know I did not mention that I am married and my wife has been saving for 25 years, so I have plenty to get started. Luckily I still have my brain power and could do anything.
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Jay Hinrichs:
@Michael Lee you may want to repost this in the Tax lien category... you posted this in MHP category. you will probably get better feedback
Thank you very much! Somebody has allready move my letter. I still have all my brain power and can do anything. Thanks again! I
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Curt Smith:
Jay has a point. I suggest you join your local REIA and find locals who buy the same type of liens you'd be. Learn from them. I also suggest you check out at least one of the national lien teachers and buy training that attracts you. The more REI I do, the more I've come to believe you have to jump start your success by networking with folks doing the same thing (REIAs and BP and else where), hire mentors and coaches, buy training systems. I started when I was older and could not have done 35 SFRs in 5 years had I gone the path of learning on the job, vs mentors, REIAs, buying training to shorten the process.
Good luck. BTW one of the tactics that really ramped up our progress was my wife retiring teaching and moving her 403b to a SD-IRA and buying a bunch of rentals in her IRA. I have read of crafty people changing jobs strategically just to get at the 401k cash to move into a SD-IRA to buy houses vs being stuck in the stock market. I mention strategic job change in regards to your wife still working. Just one trick to get a larger exposure to real estate passive income.
Today, since we self manage 14 or so (taxable) rentals, we are entitled to have a solo-401k. Any type of self employment, managing your own taxable rentals qualifies (where rentals in an SD_IRA does not), you to have your own solo 401k. We will move our SD-IRAs to solo 401k, a MUCH better situation than working through a SD-IRA custodian. You have to live through buying, rehabbing, managing rentals through a custodian to realize the serious pain that is. A solo-401k gives you check book control, no custodian and a lower IRS penalty foot print should you have your retirment account audited.
Thank you very much! Somebody has allready moved my letter. I know that I did not mention it but I have plenty of money that I need to get started. I was an owner of a company when this happened, so I know a lot about that. Thanks again!
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Justin Thompson:
Michael,
That is a tough question to answer due to your health and unknown financial situation. If you have money set aside that you can invest and if lost, you will still be ok, then I say get into something you can do that won't cause much stress. I haven't personally persued tax liens because of all the things that go along with it. I'd possibly suggest investing in REIT's instead. This should give you a more structured return on your
investments with less time/energy involved.
I plan on doing something. I know I did not mention it but I have plenty of money to get started. Thank you very much!
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Rick H.:
Well, I think I'm qualified to respond on a number of levels.
In 2009 I had heart attack, emergency heart surgery to repair a ruptured aorta, massive stroke, coma, paralysis, etc. I fact, I was still in the coma 6 years ago today.
However, it was the cognitive damage that was most distressing, not the paralysis (have both to some extent to this day). Probably why I exhibit so much contempt for those posters who piss and moan about their "problems."
Since real estate involves so much to understand, cognitive skills are essential. Having an understanding of the foundation and essentials of RE is critical. If you are familiar with the collateral, valuation, title research and documentation, you are well in your way.
Legal aspects of tax liens (and affect on title and subordinate lien positions) is quite involved and will vary state by state.
If you decide to go forward, I would specialize in a tight geographic area with a particular state and focus your efforts on being an expert on these counties.
Energy level is a whole other topic. Personally, I employ strategies that work well given my own limits and adhering them, despite others not always understanding. The definition of maturity is learning how to say "no" is one word.
I don't know your personal financial situation, so you want to assess your own tolerance for risk and hassle factors in deals.
Also, I've learned to become a capital guy to my industry and my competition, in particular. Because I'm a good marketer and have retained much influence with the CA probate legal community, I've been able to leverage the relationships and refer a substantial percentage of my leads to my competition, including deals that I fund but don't want to work for one reason or another.
Lastly, don't let others define your limits for you. Only you can decide what is a good use of your time, money, brainpower and energy!
Thank you very much! I know I did not mention it but I have plenty of money to get started and I still have a good brain. I found BP about 3 months ago and have learned a lot from that. I also found the uS Tax Lien Association and have learned a lot from them. Thanks again!
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Lance Davies:
Michael,
You alluded to collecting rent in an earlier post? Could you explain further please?
Thank you very much! I have not collected any rent but I have closed a few deals. Thanks again!
- Marysville, WA · Member since 2015 · 136 posts · 19 votes10y
Originally posted by @Rick H.:
Well, I think I'm qualified to respond on a number of levels.
In 2009 I had heart attack, emergency heart surgery to repair a ruptured aorta, massive stroke, coma, paralysis, etc. I fact, I was still in the coma 6 years ago today.
However, it was the cognitive damage that was most distressing, not the paralysis (have both to some extent to this day). Probably why I exhibit so much contempt for those posters who piss and moan about their "problems."
Since real estate involves so much to understand, cognitive skills are essential. Having an understanding of the foundation and essentials of RE is critical. If you are familiar with the collateral, valuation, title research and documentation, you are well in your way.
Legal aspects of tax liens (and affect on title and subordinate lien positions) is quite involved and will vary state by state.
If you decide to go forward, I would specialize in a tight geographic area with a particular state and focus your efforts on being an expert on these counties.
Energy level is a whole other topic. Personally, I employ strategies that work well given my own limits and adhering them, despite others not always understanding. The definition of maturity is learning how to say "no" is one word.
I don't know your personal financial situation, so you want to assess your own tolerance for risk and hassle factors in deals.
Also, I've learned to become a capital guy to my industry and my competition, in particular. Because I'm a good marketer and have retained much influence with the CA probate legal community, I've been able to leverage the relationships and refer a substantial percentage of my leads to my competition, including deals that I fund but don't want to work for one reason or another.
Lastly, don't let others define your limits for you. Only you can decide what is a good use of your time, money, brainpower and energy!
Wow Rick Great Advice !
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Mark Nolan:
Once your spouse can transfer her employer retirement plan to an IRA, she will be able to invest her retirement funds in tax liens.
Thank you very much! My wife was e played by SW Auirlinesfor 10 years of the past and has about 125K from that she has transferred. Thanks again!
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Emmett R. McCarthy:
Assuming you feel competent enough to undertake these types, I would spend a lot of time researching which states/counties to invest in. Some states (such as IL, where I practice) are very tax buyer friendly (clear title on deeds, good returns on redemptions, ways to get your money back on "bad" properties), and others are not (low returns, no opportunities to get your money back, the need to file a quiet title action after getting a deed). Good luck!Thank you very much! I have gotten about 7 hours of training CDs to listen to and I learned quite a bit from them and have been learning from BP for the last 3 months or so. I think I am ready. Thank you again
- Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes10y
Originally posted by @Rick H.:
Well, I think I'm qualified to respond on a number of levels.
In 2009 I had heart attack, emergency heart surgery to repair a ruptured aorta, massive stroke, coma, paralysis, etc. I fact, I was still in the coma 6 years ago today.
However, it was the cognitive damage that was most distressing, not the paralysis (have both to some extent to this day). Probably why I exhibit so much contempt for those posters who piss and moan about their "problems."
Since real estate involves so much to understand, cognitive skills are essential. Having an understanding of the foundation and essentials of RE is critical. If you are familiar with the collateral, valuation, title research and documentation, you are well in your way.
Legal aspects of tax liens (and affect on title and subordinate lien positions) is quite involved and will vary state by state.
If you decide to go forward, I would specialize in a tight geographic area with a particular state and focus your efforts on being an expert on these counties.
Energy level is a whole other topic. Personally, I employ strategies that work well given my own limits and adhering them, despite others not always understanding. The definition of maturity is learning how to say "no" is one word.
I don't know your personal financial situation, so you want to assess your own tolerance for risk and hassle factors in deals.
Also, I've learned to become a capital guy to my industry and my competition, in particular. Because I'm a good marketer and have retained much influence with the CA probate legal community, I've been able to leverage the relationships and refer a substantial percentage of my leads to my competition, including deals that I fund but don't want to work for one reason or another.
Lastly, don't let others define your limits for you. Only you can decide what is a good use of your time, money, brainpower and energy!
Thank you very much! I have been married for almost 32 years and my wife has been saving for about 35 years. I have enough money to get started. My brain is still in good shape. I live right outside of the City of Dallas, Texas. I was born and raised there so l am ready. Thanks again!
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